Morgan Stanley Hires Head of Technology for Brokerage From Merrill

Morgan Stanley has hired Chris Randazzo from Bank of America Merrill Lynch unit to head technology for its wealth and investment management business, the firm’s latest step to bolster the computer systems for its brokerage joint venture following a series of glitches last year.

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In a memorandum to all Morgan Stanley Wealth Management employees Tuesday, Morgan Stanley brokerage and asset management head Gregory Fleming said Randazzo will join the firm “in the near future, pending satisfaction of his leave requirements.”

Randazzo will succeed Moira Kilcoyne, who was recently promoted to chief operating officer of wealth management at Morgan Stanley. Jeff Hack, who had that role, will become a senior adviser, focusing on projects related to “client segmentation,” a company spokesman said.

The shift in technology leadership comes after Morgan Stanley recently told its roughly 16,780 financial advisers and thousands of support staff personnel that it plans to spend more than $500 million over the next 18 months to improve “the stability and functionality” of its so-called 3D platform.

Last summer, the firm was hurt by persistent technology problems, including computer systems crashing and broken links between client accounts held in a single household. These issues were caused by a massive technology conversion as the firm moved the majority of the venture’s brokers onto the same platform.

Since that time, Morgan Stanley has rolled out a series of fixes designed to make it easier for advisers to conduct business.

In the memo, Fleming said, “We want our technology to be a competitive advantage, providing our financial adviser teams and support staff with the tools they need to grow their businesses by delivering a superior experience tailored to each client.”

Fleming said in the memo that Randazzo, who was the head of technology for Bank of America Merrill Lynch’s Global Wealth and Investment Management business, has experience in businesses that are strategically important to the firm, including advisory, capital markets and banking/lending businesses.

Success in wealth management is critical to Morgan Stanley, which now owns 65% of the brokerage joint venture. The firm acquired another 14% of the business from Citigroup last fall and hopes to buy the remaining 35% of the unit from Citi this year, pending approval from regulators.

A full quarter of increased ownership, along with lower integration costs, helped wealth management reach a 17% pretax profit margin for the fourth quarter, the highest since the venture was created.

Reaching a midteens margin was a key goal for Morgan Stanley, which is targeting 20% in a better market environment.